Pixelworks To Cut Around 16% Of Workforce; Stock Up

(RTTNews) - Pixelworks, Inc. (PXLW), Thursday announced a reduction of around 16 percent of workforce in the areas of operations, research and development, sales, marketing, and administration.

Pixelworks estimates expenses of approximately $1.7 million related to employee severance and benefits, which will be recorded in the second quarter of 2024.

The company expects the restructuring plan to help streamline the operations and workforce, and align the operating expenses with current revenue levels.

The terminated employees, who hold an interest in one of the five employee stock ownership entities, will receive a collective amount of $1.2 million from Pixelworks Semiconductor Technology (Shanghai) Co., Ltd.

The restructuring plan would result in annual savings of around $4 million and is expected to be completed by the end of the second quarter.

Currently, Pixelworks's stock is climbing 6.42 percent, to $0.948 on the Nasdaq.